The Michigan Economic Development Corporation today announced Michigan Strategic Fund approval of a $3 million Michigan Business Development Program incentive for the construction of a new La-Z-Boy headquarters in Monroe.
LANSING – The Michigan Economic Development Corporation today announced Michigan Strategic Fund approval of a $3 million Michigan Business Development Program incentive for the construction of a new La-Z-Boy headquarters in Monroe. The expansion will generate at least $47 million in new private investment, adding a projected 50 new jobs.
“The La-Z-Boy name is synonymous with quality and comfort, and it is great news thislongstanding Michigan company chose to make large, new investments here,” said MEDC President and CEO Michael A. Finney. “La-Z-Boy’s continued commitment sends a message that will be heard around the world that Michigan’s highly competitive business climate and tremendous workforce capabilities mean real opportunities for leading edge businesses.”
La-Z-Boy Incorporated, headquartered in Monroe for 85 years, is one of the world’s leading residential furniture producers. The company manufactures a full line of living room and family room furniture including its world-famous recliners, reclining sofas and loveseats, sleep sofas and stationary sofas and chairs. La-Z-Boy plans to construct a new worldheadquarters in the City of Monroe and prepare the current headquarters site for redevelopment. The company plans to invest approximately $47 to $53 million dollars, prior to incentives and tax abatements, and create 50 new jobs, resulting in a $3 million Michigan Business Development Program incentive for the project. The MSF also approved a Renaissance Zone and $700,000 in Community Development Block Grant funds for the project. Michigan was chosen over a competing site in northwest Ohio.
“We are pleased to receive assistance and cooperation from local and state governments so that we may proceed with plans to move into a facility that is more reflective of our vision for the future. Accordingly, we are committed to developing a LEED-certified building utilizing sustainable building practices,” said La-Z-Boy Chairman, President and Chief Executive Officer Kurt L. Darrow. “The building will also herald our evolving image as a global company and will enable us to work in an environment that fosters creativity, collaboration and ongoing innovation.”
The City of Monroeand Frenchtown Township are supporting the MSF-designated Renaissance Zone for nine years, with a value of approximately $9 million.
“The city is delighted to support the continued success of La-Z-Boy, a company that was founded in Monroe 85 years ago and has remained a pillar of our business community,” said Monroe Mayor Robert Clark. “The retention of nearly 500 jobs helps secure the growing economic recovery in Monroe and the State of Michigan.”
“The County of Monroe and the Monroe County Business Development Corporation are thrilled that one of our oldest and most successful companies, La-Z-Boy Incorporated, has been able to secure the necessary incentives from the MSF Board to allow them to invest in a new world class headquarters in the community in which they were founded,” said Monroe County Business Development Corporation President and CEO Tim C. Lake. “The County of Monroe and its Board of Commissioners and staff were most helpful in working with both the City of Monroe and Frenchtown Township to make this dream a reality. Retaining La-Z-Boy in the County of Monroe is important to not only the county but to the region.”
The Michigan Business Development Program provides grants, loans and other economic assistance to qualified businesses that make investments or create jobs in Michigan, with preference given to businesses that need additional assistance for deal-closing and for second stage gap financing.
The MSF will consider a number of factors in making these awards, including: out-of-state competition, private investment in the project, business diversification opportunities, near-term job creation, wage and benefit levels of the new jobs, and net-positive return to the state. Business retention and retail projects are not eligible for consideration of these incentives.
About Michigan Economic Development Corporation (MEDC)
The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.